Savings

Saving for the future

What are your long-term aims?

  • Capital growth for future security - longer term savings with interest added to build up your savings?
    OR
  • An income from your savings - interest paid regularly for you to use?

Having decided your aims, there are a number of things to consider when choosing a savings account. Our Decision tree may help.


Can you save over several years or will you need access to your money?

You may get the best return on your savings if you can afford to put your money away for several years, into an account where access is limited. If you are going to need access to your savings sooner then you may need an account which does not penalise you for withdrawing funds.


Do you want to deposit a lump sum or to save on a regular basis?

In choosing an account for a lump sum you will need to consider, for example, the minimum deposit requirements, whether you can add to your initial lump sum and if there is a "maturity" date.

When choosing an account for regular payments, look out for any restrictions or limits. If you choose the tax advantages of an ISA, make sure that you don't exceed the maximum amount for that tax year, to avoid being taxed on your interest.


Do you want risk-free savings or will you take a risk for a potentially higher return?

Higher risk investments
  • These are generally "equity" based investments, i.e. those based on investing directly on the stock market, although there is a wide variety of high risk investments.

  • Examples are shares in particular companies, Unit Trusts or equity based ISAs.

  • The potential returns are higher over the long term but so are the risks in that the value of your savings could go down as well as up.

  • If you are interested in high risk investments, make sure you get sound financial advice first.

  • We can arrange an interview with a Legal & General Financial Adviser, which can be held at one of our branches or in your own home.

Low risk savings
  • A Building Society account offers a great risk-free way of saving.

  • If you do not need regular access to your money or can leave your money untouched for a longer period, you may get higher rates of interest.

Monthly income
  • You can generally get an investment that pays a regular income whatever type of savings you select.

  • With this option, the interest your savings earn is paid into an account of your choice, generally monthly.


Offshore Accounts

Depending on your circumstances, you could consider an offshore account. Interest on Yorkshire Guernsey accounts is paid gross if you are a non-EU resident. If you are an EU resident it is paid either gross or net depending on your tax status following the introduction of the European Savings Tax Directive, as it applies in Guernsey.

This means that a retention tax will be deducted from interest payments unless you elect to have interest paid gross. If you elect for gross payment, Yorkshire Guernsey is obliged to report your details and your interest payments to the Guernsey tax authorities. Relevant information will also be passed to the tax authorities in the EU Member State in which you reside.

The Directive also affects individuals that hold a joint account with a resident of an EU Member State. In this case, Yorkshire Guernsey will deduct the retention tax from interest payments on a pro rata basis unless the other party to the account elects to have their share of the interest paid gross.

For more information about offshore accounts, visit the Yorkshire Guernsey website. Yorkshire Guernsey is a wholly owned subsidiary of the Yorkshire Building Society.

For more information about the Directive, please visit www.guernseyfinance.com (Opens in a new window)

Online Research

There are a number of financial sites offering free information. This is money is a good place to start.


Decision tree

Decision tree Yorkshire Guernsey Web Site

Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, credit cards, loans, mortgages and more.

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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).